Question
Weismann Co. issued 11-year bonds a year ago at a coupon rate of 12 percent. The...
Weismann Co. issued 11-year bonds a year ago at a coupon rate of 12 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 11 percent, what is the current bond price?
Homework Answers
Answer #1
Value of Bond = 
Where r is the discounting rate of a compounding period i.e. 11%/2 = 5.5% _ _ (Semi Annual )
And n is the no of Compounding periods 10 years * 2 = 20 periods_ _ (Semi Annual )
Coupon 12%/2 = 6%
= 
= 717.02294916 + 342.72896327
= $ 1059.75
Value of Bond is $ 1059.75
NOTE: The answer to your question has been given below/above. If there is any query regarding the answer, please ask in the comment section. If you find the answer helpful, do upvote. Help us help you.
We were unable to transcribe this image
We were unable to transcribe this image
Not the answer you're looking for?
Similar Questions
Weismann Co. issued 11-year bonds a year ago at a coupon rate of 12 percent. The...
Weismann Co. issued 11-year bonds a year ago at a coupon rate of
12 percent. The bonds make semiannual payments and have a par value
of $1,000. If the YTM on these bonds is 11 percent, what is the
current bond price?
Weismann Co. issued 6-year bonds a year ago at a coupon rate of 7 percent. The...
Weismann Co. issued 6-year bonds a year ago at a coupon rate of
7 percent. The bonds make semiannual payments and have a par value
of $1,000. If the YTM on these bonds is 10 percent, what is the
current bond price?
Weismann Co. issued 18-year bonds a year ago at a coupon rate of 10 percent. The...
Weismann Co. issued 18-year bonds a year ago at a coupon rate of
10 percent. The bonds make semiannual payments and have a par value
of $1,000. If the YTM on these bonds is 10 percent, what is the
current bond price?
Weismann Co. issued 13-year bonds a year ago at a coupon rate of 10 percent. The...
Weismann Co. issued 13-year bonds a year ago at a coupon rate of
10 percent. The bonds make semiannual payments and have a par value
of $1,000. If the YTM on these bonds is 8 percent, what is the
current bond price?
Weismann Co. issued 8-year bonds a year ago at a coupon rate of 8 percent. The...
Weismann Co. issued 8-year bonds a year ago at a coupon rate of
8 percent. The bonds make semiannual payments and have a par value
of $1,000. If the YTM on these bonds is 10 percent, what is the
current bond price?
$1,498.93
$772.13
$911.01
$940.37
$901.01
Weismann Co. issued 16-year bonds a year ago at a coupon rate of 8 percent. The...
Weismann Co. issued 16-year bonds a year ago at a coupon rate of
8 percent. The bonds make semiannual payments and have a par value
of $1,000. If the YTM on these bonds is 7 percent, what is the
current bond price?
Multiple Choice
$1,101.96
$1,065.47
$647.95
$1,647.72
$1,091.96
Weismann Co. issued 20-year bonds a year ago at a coupon rate of 6 percent. The...
Weismann Co. issued 20-year bonds a year ago at a coupon rate of
6 percent. The bonds make semiannual payments and have a par value
of $1,000. If the YTM on these bonds is 10 percent, what is the
current bond price? Multiple Choice $662.64 $657.90 $672.64 $755.76
$1,847.39
Sqeekers Co. issued 10-year bonds a year ago at a coupon rate of 7.6 percent. The...
Sqeekers Co. issued 10-year bonds a year ago at a coupon rate of
7.6 percent. The bonds make semiannual payments and have a par
value of $1,000. If the YTM on these bonds is 5.9 percent, what is
the current bond price?
Chubb Co. issued 8-year bonds two years ago at a coupon rate of 9 percent. The...
Chubb Co. issued 8-year bonds two years ago at a coupon rate of
9 percent. The bonds make semiannual payments and have a par value
of $1,000. If the YTM on these bonds is 6 percent, what is the
current bond price?
3. Bernstein Co. issued 20-year bonds 4 years ago at a coupon rate of 2.75 percent. The bonds...
3. Bernstein Co. issued 20-year bonds 4 years
ago at a coupon rate of 2.75 percent.
The bonds make semiannual
payments and have a par value of $1,000. If the YTM
on these bonds is 2.5 percent, what is the
current bond price?
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 8 minutes ago
asked 12 minutes ago
asked 14 minutes ago
asked 37 minutes ago
asked 37 minutes ago
asked 42 minutes ago
asked 55 minutes ago
asked 56 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago